passwella.
Menu

WAEC Economics 2016 Question 7

Question 7

Elasticity

The demand curve for a necessity is usually

  1. A.vertical.
  2. B.backward bending.
  3. C.horizontal.
  4. D.negatively sloped.
Show the answer and explanation

Answer: D (negatively sloped.)

Explanation

People buy necessities even when prices rise, so demand is inelastic and the curve is steep. But they still buy slightly less at higher prices, so it slopes downwards (negatively sloped).